NEWARK, N.J., Oct. 29, 2020 /PRNewswire/ -- Rafael Holdings,
Inc., (NYSE: RFL), reported revenue of $4.9
million and a loss per share of $0.66 for the fiscal year ended July 31, 2020. Fourth quarter revenue was
$1.2 million with a loss per share of
$0.34.
Q4 FY 2020 Consolidated Highlights
- Revenue of $1.2 million in Q4
FY2020, generated by Rafael Holdings' real estate portfolio, was
unchanged from the year-ago quarter. The loss per share of
$0.34 increased from $0.16 in the year ago quarter largely due to
additional investment in the Company's wholly owned pharmaceutical
research venture, the Barer Institute.
- In August after the quarter close, the company sold its
commercial real estate property in Piscataway, New Jersey for $3.9 million
Rafael Pharmaceuticals
At July 31, 2020, the Company and
its subsidiaries collectively owned securities representing 51% of
the outstanding capital stock of Rafael Pharmaceuticals and
approximately 37% on a fully diluted basis.
- The U.S. Food and Drug Administration (FDA) granted Orphan Drug
Designation for Rafael Pharma's lead compound, CPI-613®
(devimistat), for the treatment of soft tissue sarcoma.
Rafael's clinical trial will focus on the treatment of relapsed or
refractory clear cell sarcoma.
- Ono Pharmaceutical Co., has begun a multicenter, open-label
Phase 1 study in Japan for
patients with pancreatic cancer. The study is evaluating the
efficacy and safety of CPI-613®️ (devimistat) in combination with
modified FOLFIRINOX (mFFX).
- Rafael Pharma reached its target enrollment of 500 patients in
its pivotal Phase 3 clinical trial for metastatic pancreatic cancer
(AVENGER 500). The trial is evaluating the efficacy and
safety of CPI-613®️ (devimistat) in combination with modified
FOLFIRINOX (mFFX) as first-line therapy. Efficacy data for this
trial could be available for analysis as early as the second
quarter of calendar year 2021.
- Rafael Pharma has crossed the midpoint to its first interim
analysis in enrollment for its pivotal Phase 3 clinical trial
(ARMADA 2000) of CPI-613® (devimistat) for relapsed or refractory
acute myeloid leukemia (AML). The multicenter, open-label,
randomized pivotal trial is evaluating the efficacy and safety of
its lead compound devimistat in combination with high dose
cytarabine and mitoxantrone (CHAM) in older patients. The
efficacy data for this trial couuld be available for interim
analysis as early as the second quarter of calendar year 2021.
- Rafael Pharma expanded its Phase 2 clinical trial of CPI-613®
(devimistat) for patients with relapsed or refractory Burkitt's
lymphoma/leukemia.
- Rafael Pharma entered into a research collaboration with
Roswell Park Comprehensive Cancer Center to evaluate the effects of
CPI-613® (devimistat) with or without chemotherapy agents,
including oxaliplatin/cisplatin/5-FU/carboplatin/taxol, on
esophageal cancer cells.
LipoMedix
At July 31,
2020, Rafael Holdings held 67% of the issued and outstanding
ordinary shares of LipoMedix, a development-stage Israeli company
focused on the development of an innovative, safe and effective
cancer therapy based on liposome delivery. This stake is inclusive
of 4 million shares of LipoMedix purchased in May 2020 for $1
million including conversion of outstanding bridge
notes.
Barer Institute
The Barer Institute has identified and
begun to evaluate new therapeutic compounds, including compounds to
regulate cancer metabolism, through internal development and
in-licensing. It is working to validate newly discovered biomarkers
for resistance and sensitivity within its portfolio compounds and
to identify certain novel targetable mechanisms of action. In
addition, the Barer Institute has identified several potential lead
compounds for clinical development and found combinations that may
meaningfully increase the efficacy of certain clinical
compounds.
Remarks by Howard Jonas,
Chairman and CEO of Rafael Holdings
"Rafael Holdings'
continued to execute on our strategic vision in the fourth quarter,
selling our Piscataway property
and further increasing our majority stake in LipoMedix. In
August, Rafael Pharma announced a major milestone – fully enrolling
its pivotal Phase 3 Avenger 500 study for patients with metastatic
pancreatic cancer. Results could be available as early as the
second quarter of 2021. The Barer Institute has multiple compounds
under development and collaboration programs in process with some
of the premier academic centers in the country."
About Rafael Holdings, Inc.:
Rafael Holdings is
focused on development of novel cancer therapies. The company
is a significant investor in two clinical stage oncology companies,
Rafael Pharmaceuticals, Inc. and LipoMedix Pharmaceuticals
Ltd. Through its wholly owned Barer Institute subsidiary, the
company is developing compounds focused on the regulation of cancer
metabolism. The company also holds commercial real estate
assets in New Jersey and
Jerusalem. For more information,
visit our website at rafaelholdings.com.
Rafael Holdings,
Inc.
Consolidated
Balance Sheet
(in thousands except
for share and per share data)
|
|
|
|
July
31,
|
|
|
|
2020
|
|
|
2019
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
6,206
|
|
|
$
|
12,024
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $218 and $122
at July 31,
2020 and 2019, respectively
|
|
|
267
|
|
|
|
450
|
|
Due from Rafael
Pharmaceuticals
|
|
|
118
|
|
|
|
280
|
|
Prepaid expenses and
other current assets
|
|
|
273
|
|
|
|
507
|
|
Assets held for
sale
|
|
|
2,968
|
|
|
|
—
|
|
Total current
assets
|
|
|
9,832
|
|
|
|
13,261
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
44,433
|
|
|
|
48,733
|
|
Equity investment –
RP Finance
|
|
|
192
|
|
|
|
—
|
|
Investments – Rafael
Pharmaceuticals
|
|
|
70,018
|
|
|
|
70,018
|
|
Investments – Other
Pharmaceuticals
|
|
|
1,201
|
|
|
|
2,000
|
|
Investments – Hedge
Funds
|
|
|
7,510
|
|
|
|
5,125
|
|
Deferred income tax
assets, net
|
|
|
6
|
|
|
|
19
|
|
In-process research
and development and patents
|
|
|
1,575
|
|
|
|
1,575
|
|
Other
assets
|
|
|
1,580
|
|
|
|
1,412
|
|
TOTAL
ASSETS
|
|
$
|
136,347
|
|
|
$
|
142,143
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
|
921
|
|
|
$
|
795
|
|
Accrued
expenses
|
|
|
1,191
|
|
|
|
605
|
|
Amount due for
purchase of membership interest
|
|
|
3,500
|
|
|
|
—
|
|
Other current
liabilities
|
|
|
115
|
|
|
|
27
|
|
Total current
liabilities
|
|
|
5,727
|
|
|
|
1,427
|
|
|
|
|
|
|
|
|
|
|
Due to related
parties
|
|
|
—
|
|
|
|
65
|
|
Convertible debt, net
of discount of $0 and $54 - Related Party
|
|
|
—
|
|
|
|
14,946
|
|
Other
liabilities
|
|
|
92
|
|
|
|
292
|
|
Accrued interest on
convertible debt - Related Party
|
|
|
—
|
|
|
|
649
|
|
TOTAL
LIABILITIES
|
|
|
5,819
|
|
|
|
17,379
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Class A common stock,
$0.01 par value; 35,000,000 shares authorized, 787,163 shares
issued and
outstanding as of July 31, 2020 and July 31, 2019,
respectively
|
|
|
8
|
|
|
|
8
|
|
Class B common stock,
$0.01 par value; 200,000,000 shares authorized, 15,034,598 issued
and
15,028,536 outstanding as of July 31, 2020, and 13,142,502
shares issued and outstanding as of
July 31, 2019
|
|
|
149
|
|
|
|
131
|
|
Additional paid-in
capital
|
|
|
129,136
|
|
|
|
112,898
|
|
Accumulated
deficit
|
|
|
(16,255)
|
|
|
|
(5,840)
|
|
Accumulated other
comprehensive income related to foreign currency translation
adjustment
|
|
|
3,762
|
|
|
|
3,784
|
|
Total equity
attributable to Rafael Holdings, Inc.
|
|
|
116,800
|
|
|
|
110,981
|
|
Noncontrolling
interests
|
|
|
13,728
|
|
|
|
13,783
|
|
TOTAL
EQUITY
|
|
|
130,528
|
|
|
|
124,764
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
136,347
|
|
|
$
|
142,143
|
|
Rafael Holdings,
Inc.
Consolidated
Statement of Operations
(in thousands except
for share and per share data)
|
|
|
|
Year Ended July
31,
|
|
|
|
2020
|
|
|
2019
|
|
REVENUES
|
|
|
|
|
|
|
Rental – Third
Party
|
|
$
|
1,516
|
|
|
$
|
1,452
|
|
Rental – Related
Party
|
|
|
2,082
|
|
|
|
2,125
|
|
Parking
|
|
|
832
|
|
|
|
874
|
|
Other – Related
Party
|
|
|
480
|
|
|
|
480
|
|
Total
Revenue
|
|
|
4,910
|
|
|
|
4,931
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
9,118
|
|
|
|
8,821
|
|
Research and
development
|
|
|
2,391
|
|
|
|
1,027
|
|
Depreciation
|
|
|
1,866
|
|
|
|
1,779
|
|
Loss from
operations
|
|
|
(8,465)
|
|
|
|
(6,696)
|
|
|
|
|
|
|
|
|
|
|
Interest (expense)
income, net
|
|
|
(32)
|
|
|
|
469
|
|
Net (loss) gain
resulting from foreign exchange transactions
|
|
|
(5)
|
|
|
|
47
|
|
Gain on sale of
marketable securities
|
|
|
—
|
|
|
|
330
|
|
Impairment of
investments - Other Pharmaceuticals
|
|
|
(799)
|
|
|
|
—
|
|
Unrealized gain on
investments - Hedge Funds
|
|
|
2,385
|
|
|
|
907
|
|
Loss before income
taxes
|
|
|
(6,916)
|
|
|
|
(4,943)
|
|
(Provision for)
benefit from income taxes
|
|
|
(29)
|
|
|
|
19
|
|
Impairment of equity
method investment of Altira
|
|
|
(4,000)
|
|
|
|
—
|
|
Equity in earnings of
RP Finance
|
|
|
192
|
|
|
|
—
|
|
Consolidated net
loss
|
|
|
(10,753)
|
|
|
|
(4,924)
|
|
Net loss attributable
to noncontrolling interests
|
|
|
(338)
|
|
|
|
(231)
|
|
Net loss
attributable to Rafael Holdings, Inc.
|
|
$
|
(10,415)
|
|
|
$
|
(4,693)
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE LOSS
|
|
|
|
|
|
|
|
|
Net
Loss
|
|
$
|
(10,753)
|
|
|
$
|
(4,924)
|
|
Foreign Currency
Translation Adjustment
|
|
|
(22)
|
|
|
|
298
|
|
Total
Comprehensive Loss
|
|
|
(10,775)
|
|
|
|
(4,626)
|
|
Comprehensive (loss)
income attributable to noncontrolling interests
|
|
|
(9)
|
|
|
|
173
|
|
Total
Comprehensive loss attributable to Rafael Holdings,
Inc.
|
|
$
|
(10,784)
|
|
|
$
|
(4,453)
|
|
|
|
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
$
|
(0.66)
|
|
|
$
|
(0.35)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in calculation of loss per
share
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
15,764,829
|
|
|
|
13,275,239
|
|
Rafael Holdings,
Inc.
Consolidated
Statement of Cash Flows
(in
thousands)
|
|
|
|
Year Ended July
31,
|
|
|
|
2020
|
|
|
2019
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(10,753)
|
|
|
$
|
(4,924)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
1,866
|
|
|
|
1,779
|
|
Deferred income
taxes
|
|
|
13
|
|
|
|
(19)
|
|
Interest income on
Rafael Pharmaceuticals Series D Convertible Note
|
|
|
—
|
|
|
|
(848)
|
|
Interest
income
|
|
|
—
|
|
|
|
(37)
|
|
Net gain on sale of
marketable securities
|
|
|
—
|
|
|
|
(330)
|
|
Net unrealized gain
on investments - Hedge Funds
|
|
|
(2,385)
|
|
|
|
(907)
|
|
Impairment of
investments - Other Pharmaceuticals
|
|
|
799
|
|
|
|
—
|
|
Impairment of equity
method investment of Altira
|
|
|
4,000
|
|
|
|
—
|
|
Equity in earnings of
RP Finance
|
|
|
(192)
|
|
|
|
—
|
|
Provision for
doubtful accounts
|
|
|
96
|
|
|
|
122
|
|
Noncash
compensation
|
|
|
684
|
|
|
|
372
|
|
Amortization of debt
discount
|
|
|
54
|
|
|
|
17
|
|
Write-off of
patents
|
|
|
—
|
|
|
|
76
|
|
|
|
|
|
|
|
|
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
87
|
|
|
|
(285)
|
|
Prepaid expenses and
other current assets
|
|
|
234
|
|
|
|
(86)
|
|
Other
assets
|
|
|
(168)
|
|
|
|
275
|
|
Accounts payable and
accrued expenses
|
|
|
713
|
|
|
|
533
|
|
Other current
liabilities
|
|
|
88
|
|
|
|
3
|
|
Due to related
parties
|
|
|
(65)
|
|
|
|
654
|
|
Due from related
parties
|
|
|
162
|
|
|
|
(280)
|
|
Accrued interest -
Related Party
|
|
|
19
|
|
|
|
649
|
|
Other
liabilities
|
|
|
82
|
|
|
|
104
|
|
Net cash used in
operating activities
|
|
|
(4,666)
|
|
|
|
(3,132)
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Purchase of
investment in Altira
|
|
|
(500)
|
|
|
|
—
|
|
Purchases of property
and equipment
|
|
|
(534)
|
|
|
|
(399)
|
|
Proceeds from sale
and maturity of marketable securities
|
|
|
—
|
|
|
|
25,031
|
|
Investment in Rafael
Pharmaceuticals
|
|
|
—
|
|
|
|
(55,870)
|
|
Net cash used in
investing activities
|
|
|
(1,034)
|
|
|
|
(31,238)
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Contribution from
noncontrolling interest of consolidated entity
|
|
|
—
|
|
|
|
4,587
|
|
Repayment of loan
from Rafael Pharmaceuticals, including interest
|
|
|
—
|
|
|
|
3,335
|
|
Proceeds from
exercise of options
|
|
|
29
|
|
|
|
190
|
|
Proceed from sale of
shares
|
|
|
—
|
|
|
|
7,777
|
|
Proceeds from
issuance of convertible note
|
|
|
—
|
|
|
|
15,000
|
|
Payments for taxes
related to shares withheld for employee taxes
|
|
|
(125)
|
|
|
|
—
|
|
Net cash (used in)
provided by financing activities
|
|
|
(96)
|
|
|
|
30,889
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
(22)
|
|
|
|
(298)
|
|
Net decrease in cash
and cash equivalents
|
|
|
(5,818)
|
|
|
|
(3,779)
|
|
Cash and cash
equivalents, beginning of year
|
|
|
12,024
|
|
|
|
15,803
|
|
Cash and cash
equivalents, end of year
|
|
$
|
6,206
|
|
|
$
|
12,024
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Schedule of Noncash Investing and Financing
Activities
|
|
|
|
|
|
|
|
|
Adoption effect of
ASU 2016-01
|
|
$
|
—
|
|
|
$
|
39
|
|
Beneficial conversion
feature of convertible debt - Related Party
|
|
$
|
—
|
|
|
$
|
71
|
|
Debt and accrued
interest converted to Series D Preferred Stock
|
|
$
|
—
|
|
|
$
|
10,848
|
|
Related Party deposit
utilized to purchase Class B Common Stock
|
|
$
|
—
|
|
|
$
|
864
|
|
Amount due for
purchase of membership interest
|
|
$
|
3,500
|
|
|
$
|
—
|
|
Transfer of asset
held for sale
|
|
$
|
2,968
|
|
|
$
|
—
|
|
Conversion of
LipoMedix Bridge Notes
|
|
$
|
283
|
|
|
$
|
—
|
|
Conversions of
related party convertible notes payable and accrued
interest
|
|
$
|
15,668
|
|
|
$
|
—
|
|
View original
content:http://www.prnewswire.com/news-releases/rafael-holdings-reports-fourth-quarter-and-full-fiscal-year-2020-results-301163394.html
SOURCE Rafael Holdings, Inc.